“West uses capital outflow as pressure tactics on BRICS”- Russia

Russian President Vladimir Putin (left) with his South African counterpart Jacob Zuma and Chinese President Xi Jinping (right) at the 5th BRICS Summit on 27 March 2013 in Durban, South Africa [PPIO]

Russian national security advisor Nikolai Patrushev has alleged that Western countries have used capital outflows from BRICS countries as a pressure tactic.

India and Brazil, among the BRICS countries, are most vulnerable to capital outflows as they relies heavily on external funding.

Western countries have pulled out more than $3.5 trillion over the last 10 years and $1.5 trillion from BRICS countries over the last three years as a mechanism to pressure the group, Russian Security Council Secretary Nikolai Patrushev said Tuesday.

“International financial institutions are being used by the West more and more often as an instrument of pressure. Over the last 10 years, the total capital outflow from the BRICS economies has reached $3.5 trillion, and more than half of that total left over the last three years,” Patrushev said during a BRICS security meeting in Moscow.

Patrushev added “the creation of BRICS development bank is an important step in ensuring economic security of the BRICS countries.”

India’s Central Bank Governor Raghuram Rajan, had also said earlier that India needs to build a “bullet-proof national balance sheet” to deal with the fallout on the economy from outflow of capital.

 

 

TBP and Agencies